Razorpay targets 1.5 lakh exporters on Amazon's Global Selling Platform

Razorpay targets 1.5 lakh exporters on Amazon's Global Selling Platform

  • 18.03.2025 15:57
  • business-standard.com
  • Keywords: Razorpay

Razorpay aims to process cross-border transactions for over 1.5 lakh Amazon Global Selling Platform exporters in India with zero forex markup, cutting transaction costs by up to 50%. The service has been available since December last year for Indian merchants using Amazon's global payout system.

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Estimated market influence

Razorpay

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Analyst rating: N/A

Razorpay is a fintech company targeting exporters on Amazon's Global Selling Platform to process cross-border transactions with zero forex markup, aiming to reduce transaction costs by up to 50%.

Context

Analysis of Razorpay's Expansion into Cross-Border Transactions on Amazon's Global Selling Platform

Key Facts

  • Target Audience: Over 150,000 exporters using Amazon’s Global Selling Programme.
  • Service Offered: Processing cross-border transactions with zero forex markup.
  • Cost Savings: Merchants can save up to 50% on transaction charges compared to traditional methods.
  • Timeline:
    • December last year: Introduction of international bank transfer service for Amazon Global Selling merchants.
    • Recent announcement: Entry into Singapore as the second international market (after Malaysia in 2022).
  • Current Scale:
    • Serves over 1 million businesses in India.
    • Processes $3 billion in transactions monthly.

Market Implications

  • Disruption of Traditional Banking Services: Razorpay's zero forex markup model challenges conventional banking fees, potentially attracting a large customer base.
  • Growth Potential: Expansion into Singapore indicates strategic diversification and access to the Southeast Asian market, enhancing global reach.

Competitive Dynamics

  • Early Entrant Advantage: As one of the first PAs in India offering cross-border services, Razorpay gains a competitive edge.
  • Amazon's Ecosystem Integration: Leveraging Amazon’s extensive merchant network for rapid adoption and scale.

Strategic Considerations

  • Market Expansion Strategy: Focusing on high-growth regions like Southeast Asia to diversify revenue streams.
  • Focus on Cost Efficiency: Emphasizing lower transaction costs to differentiate from competitors and increase merchant retention.

Long-term Effects

  • Potential Market Leadership: Early adoption could position Razorpay as a leading player in the digital payment ecosystem, especially with Amazon's support.
  • Scalability: The model’s scalability across multiple markets supports long-term growth and profitability.

Regulatory Impact

  • While not explicitly detailed, compliance with international financial regulations will be crucial for sustained global expansion.